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Question
The Hagard Mercantile Company has made a $30 million investment in a mill in Germany and fears a substantial decline in the mark's current spot rate from $0.63 to $0.56 lowering the value of the company's investment in the mill. Which of the following currency contracts can help Hagard solve this problem?
A. Call currency option
B. Put currency option
C. Long-hedge currency futures contract
D. Currency swap contract
E. None of the options is correct.
Answer
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Related questions
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